International Mercantile Marine Co.

The International Mercantile Marine Company ( IMMC ) was an American shipping company based in New York City, whose main business purpose was to maintain a regular service between North America and Europe. Initiator of IMMC was the American banker, railroad magnate and businessman John Pierpont Morgan, who once said, " Who needs to ask for the price of a yacht, can not afford ."

History

Morgan's attack on the maritime began in 1900, when he was at the peak of his success. His bank had assets of $ 162 million and its railroad, the Baltimore and Ohio Railroad, was a railroad network of 15,000 km between the Atlantic coast and Chicago. His plan, the Marine sector, was remarkably simple: Take over all major shipping companies in the world and the connection of vessels with its railway network.

Morgan put together with a group of shareholders 20 million dollars that allow the two major American cruise lines, Atlantic Transport Line ( ATL) and the International Navigation Company were bought. In this way, Morgan came into the possession of about 40 ships, mostly freighters. After that, Morgan focused on the UK. In April 1901 we paid $ 12 million in cash for the shipping company Leyland Line, the largest transatlantic freighter line with their 40 ships. Just 10 months later, bought it for $ 40 million in cash and shares, the White Star Line, with its eight passenger liners. By the way, acquired Morgan nor the Dominion Line Ltd. for 4.5 million dollars with its 6 passenger and cargo ships.

Within just one year, Morgan and his partner, a fleet of about 100 ships had acquired, which represented about one-third of the tonnage that ran between Europe and North America. The press in Europe railed against this Morganisierung of the Atlantic, but dropped the boards of the shipping companies difficult to overlook Morgan's takeover offers. At the beginning of 1902 included the two major German shipping companies, the Hamburg-America Line (HAL / Hapag ) and North German Lloyd ( NDL), a 10 -year contract with Morgan's society. Although they did not want to sell, but still pursue a common policy with Morgan, to avoid excessive competition.

In April 1902 Morgan announced the formation of a holding company, the International Mercantile Marine Company ( IMMC ), with assets of $ 170 million. This number came into being in part by that one. 's Future share value that involved, which was set extremely optimistic

However, not all shipping companies wanted to buy Morgan. The prestigious British Cunard Line refused and the President exercised as long as pressure on the Parliament, until it approved a loan of $ 11,712,000 for the construction of new ships and beyond annual subsidy of $ 732,000. This open resistance could take another important shipping company Courage, then, the French Compagnie Generale Transatlantique SA State (CGT ), with its 75 passenger and cargo ships, the offers Morgan was deaf to.

So Morgan got great plan for a monopoly on the Atlantic Ocean in trouble. The IMMC got into a hard and costly competition and had more new ships for the subsidiaries in order to give in order to improve the market situation.

As Morgan lost interest in the Company, the IMMC began under bad management to suffer and had to declare bankruptcy in 1915. But the First World War, with its demand for ships saved the company from going under. In the 1920s, the company focused on its U.S. lines and separated from their foreign acquisitions. 1922 changed the IMMC its name to United States Lines, Inc. ( USL ) and survived as one of the most successful and most profitable U.S. shipping companies, until they too went bankrupt in 1987.